Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Solana [SOL] saw a significant hike in its price in the last week of trading and as it continues on its bullish momentum.
Needless to say, the coin has captured the imagination and interest of investors and traders alike, with some predicting it to trade well over the $150 mark soon.
Once notorious for its outages, Solana claimed in July to have not suffered any outages since February.
Solana’s developer Jacob Creech recently announced a $400,000 bounty for anyone who could turn Solana off.
Solana’s flagship meme coin, BONK, is also gaining the attention of enthusiasts who are keen to boost its adoption.
BONK recently announced a “PooperScooper” function that helps users organize their assets more efficiently in their wallets.
Solana 101
Even as SOL is touted to be the “Ethereum [ETH] killer,” Solana Labs co-founder Anatoly Yakovenko seems to agree with the idea of using Ethereum as a layer-2 for the Solana blockchain.
Even Ethereum founder Vitalik Buterin is an admirer of the Solana protocol. When the SEC sued Binance [BNB] and Coinbase [COIN] in early June, it labeled several altcoins, including SOL, as securities.
Buterin rued how the regulator had targeted projects like Solana.
Heading into 2023, SOL was hovering around the $10 support zone. It was already in the grips of a downtrend that stretched back to November 2021, back when SOL was trading at $200.
We asked ChatGPT for its take on the price, network health, and the trajectory of Solana after giving it some relevant data points.
What does ChatGPT say?
ChatGPT has been a remarkable chatbot, and the updates of the past month have made ChatGPT 4.0 quite impressive. It is a powerful tool for learning and training on a vast array of topics.
Yet, we must remember that the bot is engineered to mimic a human, and is not necessarily guaranteed to be factually accurate.
The jailbreak version of ChatGPT would likely be even more inaccurate, as it is specifically instructed not to say no to anything the user requests.
And yet, it is possible to obtain some guesses from the chatbot on what the future might hold if we provide it with details about recent price movements.
So, what does ChatGPT make of Solana? Does it see a route to recovery after its recent setbacks? Based on transaction fees and transaction speeds, ChatGPT seems to think Solana will be an Ethereum killer.
Source: ChatGPT
As per our forecast and estimates, we also see an overall bullish sentiment for Solana in the longer term.
As per our calculations to become a Solana millionaire by 2034 you need to accumulate around 2000 SOL tokens.
We have yet to inform it of the challenges that Solana and SOL investors have faced in recent months. Let’s start with the biggest dent in investor confidence –
FTX’s impact
Sam Bankman-Fried “SBF” was one of the most vocal proponents of the Solana network. The community saw him as a credible and smart entrepreneur who was the CEO of one of the largest crypto exchanges, FTX.
Even though Binance reigned supreme in terms of volume and token pairs, FTX was giving it a run for its money. Competition is also good for the industry and serves the customers.
A lot has changed since then, as there is a trial going on against SBF. It has been alleged he commingled FTX customer funds with those of Alameda Research to make undisclosed venture investments.
He could face years in jail if convicted on all counts.
Not only did the reputation of Solana take a hit, but the foundation also sold a significant amount of SOL to FTX Trading and Alameda Research.
This amounted to 58.08 million SOL, or 11% of the circulating supply at the time FTX filed for bankruptcy, valued at close to $1.1 billion at the time.
As expected, the price of Solana nosedived in November and declined by 45% from the 11th of November to the 31st of December, falling from $18.08 to $8.
With rumors of FTX’s insolvency circulating from the 5th of November, SOL had already lost 50% the previous week, when it was trading near the $38 mark.
This took SOL’s total losses from the 5th of November 2022 to the 31st of December 2022 to 79.4%.
Source: ChatGPT
ChatGPT certainly sounds optimistic, and early 2023 went extraordinarily well for investors. And yet, some network issues cropped up, just as they had in 2022.
We also asked the chatbot about Solana’s outages in the past, which might hurt investor confidence.
Source: ChatGPT
Solana’s price movements
SOL was trading at $146.50 at the time of writing, with a 17.18% growth in its price in the last week of trading.
The Awesome Oscillator (AO) saw green bars forming above the 0-level, hinting at a bullish momentum. This sentiment was also reflected by the Parabolic SAR. as the price was seen moving upwards.
Source: TradingView
Solana is expected to grow more as it has broken past its previous range of $125.12- $80.51 and might go above the $154.87 mark soon if its momentum continues.
Conclusion
ChatGPT’s optimism for the coin might come true if it continues growing at its current rate.
Its image of an “Ethereum-killer” with better scalability, higher transaction throughput, and lower transaction fees is something that the chatbot is banking on.
Although ChatGPT is a tool used widely for trading by many, it is important to do your own research before investing in the crypto space.